Post Coronavirus Mortgages

Summer69

Hi everyone, I cannot find any information on this so not sure if anyone else is any the wiser...
I am trying to buy my first home this year. Obviously that won't happen just now. But I wondered if anyone knew about what mortgage lenders would possibly do in this situation once this has all blown over- I am working full time but on a 50% pay cut at the moment due to Coronavirus (20% deduction from my basic salary and no commission which amounts to approx 30% of the rest of my salary) . As mortgage lenders require to see 3-6 months worth of payslips when you earn commission as part of your salary, how will this work after Coronavirus as I am not earning at the moment what I should be earning. Will this be taken into account? Will I need any proof of this from my employer and in what form? ie a letter from HR.

If any mortgage experts have any advice on this please let me know. Thank you

Jeremy535897

I don't think you need an expert. You need someone with a crystal ball.

Thrugelmir

Tighter affordability criteria has been key for mortgage lenders for some time. The current crisis will make no difference to this requirement. Until normality returns and you've rebuilt solid earning history you will find it challenging. That's without the complete unknown of the broader economic impact on the mortgage lending/property markets as a whole. The event isn't going to pass without consequences across the board. 
. 

sharpe106

Until anybody knows what the fallout will be who knows? Banks will be issuing very few mortgages as they have no idea of what the house prices will be.

Jeremy535897

Summer69 said:

Jeremy535897 said:

I don't think you need an expert. You need someone with a crystal ball.

Helpful...

Honest. Nobody could answer your question with any degree of reliability at this time. You are asking people to look into a very uncertain future.

Gonna-be-debt-free

Summer69 said:

Hi everyone, I cannot find any information on this so not sure if anyone else is any the wiser...
I am trying to buy my first home this year. Obviously that won't happen just now. But I wondered if anyone knew about what mortgage lenders would possibly do in this situation once this has all blown over- I am working full time but on a 50% pay cut at the moment due to Coronavirus (20% deduction from my basic salary and no commission which amounts to approx 30% of the rest of my salary) . As mortgage lenders require to see 3-6 months worth of payslips when you earn commission as part of your salary, how will this work after Coronavirus as I am not earning at the moment what I should be earning. Will this be taken into account? Will I need any proof of this from my employer and in what form? ie a letter from HR.

If any mortgage experts have any advice on this please let me know. Thank you

I am definitely NOT a mortgage expert, but I can tell you what my bank (RBS) told me. 

I am wanting to remortgage, but have taken a voluntary 20% pay-cut to help out the company I work for.  The bank said that it would affect the application if I were to apply now, due to the affordability calculation, but when (if???) it goes back up to the full contractual rate I will just need the first month at the "new" rate plus the original contract - i.e. I wouldn't have to wait for months of payslips at the contractual rate.

Potbellypig

Summer69 said:

Hi everyone, I cannot find any information on this so not sure if anyone else is any the wiser...
I am trying to buy my first home this year. Obviously that won't happen just now. But I wondered if anyone knew about what mortgage lenders would possibly do in this situation once this has all blown over- I am working full time but on a 50% pay cut at the moment due to Coronavirus (20% deduction from my basic salary and no commission which amounts to approx 30% of the rest of my salary) . As mortgage lenders require to see 3-6 months worth of payslips when you earn commission as part of your salary, how will this work after Coronavirus as I am not earning at the moment what I should be earning. Will this be taken into account? Will I need any proof of this from my employer and in what form? ie a letter from HR.

If any mortgage experts have any advice on this please let me know. Thank you

With all due respect, you might as well put this on the bottom of your list. People can have some educated guesses, but the reality is until we're all back to normal, no-one can really answer.